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The VISTA Process integrates wealth management with risk and debt management, tax planning*, estate planning, and philanthropy. Our goal is to take all the pieces of your financial life and convert that to a customized plan that allows you to make inFORMed decisions as life evolves. Once we create your plan, we implement multiple strategies to manage risk for all possible outcomes. We constantly monitor and periodically adjust to keep your plan on track. Because we’re an independent firm, we’re under no obligation to sell proprietary products or services. That means we are objective and selective, offering only those investment products and services we believe are in your best interest. We work on a fee basis assuring our interests are aligned with yours. A very important feature of the VISTA Process is working with your CPA, attorney, and other like-minded professionals. We recognize that for a financial plan to be complete and sustainable, it must address all issues related to growing, protecting, and passing on your wealth. This is a key part of the process and helps our clients reach their full potential around financial independence.

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Securities and Advisory Services Offered Through Prospera Financial Services, Inc. • Member FINRA, SIPC *Speicher Financial Group does not render legal, accounting, or tax advice. Please consult your tax or legal advisors before taking any action that may have tax consequences.

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BALLANTINE P U B L I C AT I O N S FINANCIAL PLANNING NONPROFIT GUIDE HEALTHY LIVING

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Contents

T A B L E

O F

CHIEF EXECUTIVE OFFICER

Douglas Bennett DIRECTOR OF FINANCE

Carrie Cass EDITORIAL

Hunter Harrell

special sections editor

Start financial planning now

DESIGN

Tad Smith manager of creative services

Gary Markstein Bridget Williams

Find help with an adviser

ADVERTISING

Jamie Opalenik

Investing tips for beginners

Ways to pay more toward tuition

7 ways to save for retirement

director of multimedia sales

Amy Baird Kelly Bulkley Tana Creek Cole Davis Garett Dickinson Joe Nelson Shell Simonson PRODUCTION

Ryan Brown production manager

How retirement costs can change

Simple strategies to recession-proof finances

Small businesses can weather uncertainty

Save more each month and reduce expenses

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Ballantine Communications uses reasonable effort to include accurate and up-to-date information for its special magazine publications. However, all information comes from a variety of sources and may change at any time for any reason. To verify specific information, refer to the organization or business noted. To view the online version of this guide, visit: www.durangoherald.com.

It’s OK to ask for directions. It’s easy to get lost on your way to retirement. The right directions can make all the difference.

Rachel Kuss CFP® AIF® CRPS® Vice President - Investments 970.403.8570 Office 3710 Main Avenue Suite 101 Durango, CO 81301 Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Western Wealth Management, a registered investment adviser. Kennebec Wealth Management and Western Wealth Management are separate entities from LPL Financial. Based on reader votes. F I N A N C I A L

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Start thinking about financial planning now

Financial planning is a sort of catch-all catchphrase in recent years. Learning some key components of financial planning can help you have more capital on hand to achieve your short- and long-term goals. inancial planning is a process of setting personalized objectives, analyzing current assets and resources, estimating future needs and creating plans to achieve fiscal goals. Investing, risk management, retirement planning, tax requirements and estate planning are all key components of this process. Financial planning can be intimidating to some, but learning the basics of sound money management can help people secure their futures. To get started, individuals will need to see where they stand, establish financial goals and create a plan to reach those goals. While a person can create his or her own budget and financial plan, oftentimes the help of a certified financial planner can help clients explore all of the open avenues, especially beginners.

It’s important to note that financial planning may mean different things to different people. For some, experts say planning may revolve around saving for a child’s college tuition but still having enough money left to retire, while others may be looking to save extra money to invest in a business venture. Those who are living paycheck to paycheck may need help reevaluating their spending so they can grow their savings. One of the key components of financial planning is to begin doing it as soon as possible. A financial plan can be instituted at any age, and goals can be revisited as life changes occur. Financial planning strategies are something anyone can learn and utilize to secure their financial futures.

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SEEKING ADVICE

Plan and prepare finances with the help of an adviser Financial advisers are an invaluable resource for people who need help managing their money. Historically, there is a misconception that financial advisers are only for the rich, but anyone can benefit from both education and guidance when it comes to finances. Though people with complex finances tend to benefit more from planners, the key is finding a professional who understands your personal needs and is willing to work with you. According to U.S. News and World Report, some financial advisers are no longer interested in working with people without substantial portfolios. Certain firms have stopped paying Finding a fiduciary commissions to brokers for accounts that are considered People new to investing will no doubt small, including customers find some financial jargon confusing. with assets worth between Fiduciary is one term that is important. A fiduciary is a financial professional $100,000 and $500,000. While who must place clients’ interests ahead that can make it difficult to of his or her own. Fiduciaries also find help, there are still ways must disclose any existing or potential to receive assistance from conflicts of interest that might affect local professionals, you just clients’ willingness to work with them. have to find the right fit. That includes how they earn their n Ask friends for money. Non-fiduciaries have no such responsibility, so they can sell clients a recommendations. If a particular investment without having to financial adviser has worked tell clients how their own compensation with a friend, family member is affected by that sale. or colleague they may also Some fiduciaries work for specific be able to provide services to funds that only allow them to sell those you. People who have worked particular funds’ proprietary products. with the adviser you’re That’s the case even if they believe there are other investments that are better considering will be able to for given clients. Such arrangements offer more insight about the must be shared with clients for advisors benefits and process. To find to maintain their fiduciary status. The professionals with reputable Certified Financial Planner Board of credentials, look for someone Standards’ “Rules of Conduct” can be who has a Certified Financial found at www.cfp.net. Planner or Personal Financial Specialist designation. Those F I N A N C I A L

who are relying on investment advisers should work with one who has a Chartered Financial Analyst certificate. Different types of credentials indicate the professional has proficiency in specific areas of financial planning and regulations. n Look around online. There are diverse online resources that can be beneficial when searching for an adviser. Many of these sources, including U.S. News & World Report and The Garrett Planning Network, offer searchable databases or maps where users can find financial advisers in their areas who cater to the middle class. To review credentials, experience and more information about individual advisers in your area, search for their Investment Adviser Public Disclosures online at www.adviserinfo.sec.gov. n Contact a professional association. The National Association of Personal Financial advisers can provide resources for finding local financial advisers. Visit www.napfa.org for listings. Individuals can also look at the Accredited Financial Counselor website at www.afcpe.org to find professionals. Accredited financial counselors often focus on helping low- and middle-income people at affordable prices with relevant financial assistance. n Research compensation. Financial advisers may receive compensation in one of two ways: fee-only and non-fee-only. A fee-only adviser typically charges an hourly fee or flat rate for services. A non-feeonly adviser may be compensated at a percentage of assets earned or may receive incentives and commissions from their companies based on preestablished sales goals or objectives. There are no right and wrong answers to fee schedules, but find a situation that works best for you. Finally, remember that the financial planning process isn’t uniform. Do your due diligence and ask important questions before hiring an adviser.

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Investing for beginners Investing is a key component of long-term financial planning. By choosing the right investments, investors can ensure their money outgrows inflation, making it possible for them to realize their retirement goals and live comfortably long after they have stopped working. Risk is a part of investing, and many veteran investors recognize that. However, the fear of losing their hard-earned money might compel would-be beginners to avoid the markets altogether. That can be a costly mistake, and it’s one research suggests millennials are making, choosing to keep their money in savings accounts, which provide very little return in terms of interest, rather than invest in the markets. According to a recent analysis from the online financial resource NerdWallet, a 25-yearold millennial who is not investing today and does not invest until he or she retires at 65 could lose out on more than $3.3 million in retirement savings. It can be nervewracking for novices to begin investing their money, but these three investment strategies can help calm those nerves and pave the way for a bright financial future.

Identify your risk tolerance. Young investors may be told that they’re in a prime position to choose risky investments because they have less responsibilities than older investors and more time in the workforce to make up for losses. While that’s true, young investors should only be as risky as they’re comfortable being. The financial experts at Principal® advise beginners to identify their risk tolerance before investing. Investments with a high potential for return, which might include emerging markets and limited partnerships, also generally have a higher potential risk for loss, and vice versa. Investors should only accept a level of risk in their comfort zone.

Diversify your investments. Principal® notes that one way to manage risk is to choose a mix of investments from various asset classes. For example, stocks and bonds traditionally move in different directions. So when stocks are up, bonds may be down, and vice versa. Investing in different types of assets is known as diversification, which can help investors protect themselves against risk.

Make changes as you age. As investors age, their aversion to risk should grow. The closer you get to retirement the closer you are to needing all the money you have invested and earned over the years. Speak with a financial planner about how to reallocate your investments as retirement draws near.

Investing requires risk, but new investors should not allow that to keep them on the sidelines. F I N A N C I A L

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STUDENT LOANS

Ways to pay more toward tuition Students and families invest heavily in higher education. Many people who attend college rely on student loans to finance their education. In fact, Americans amassed $1.56 trillion in student loan debt by 2020. Though President Joe Biden extended the student loan payment forbearance to Sept. 30, 2021 on his first day in office, borrowers should not rely on the president’s plans for student loan forgiveness to repay debt. In January, Biden officials reminded the public of the president’s proposal to forgive debt up to $10,000 in federal student loans per person. This could wipe out debt completely for 15 million borrowers who owe $10,000 or less. Such proposals will likely take time to gain support in Congress. According to Forbes, American student loan debt is now the second highest consumer debt category, exceeded only by mortgage debt. The Institute for College Access and Success says the average student loan debt is $32,731, while the median student loan monthly payment is $222. Some students feel like paying off student loan debt is impossible. Many loan repayment schedules kick in shortly after graduation, and certain borrowers may not yet be making enough money to afford even the minimum payments on their student loans. Thankfully, there are ways to get out from under student loan pressure. n Investigate income-driven repayment. IDR will lower student loan payments based on your income, and some plans even promise to forgive any remaining balance once the repayment period is up. That period can take between 20 and 25 years. Most federal student loans are eligible for at least one of the four income-driven repayment plans. REPAYE - Revised Pay As You Earn Repayment Plan PAYE - Pay As You Earn Repayment Plan IBR - Income-based Repayment Plan ICR - Income-Contingent Repayment Plan

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Work in public service. A Public Service Loan Forgiveness program, or PSLF, enables student loan forgiveness in exchange for working for a nonprofit or working in government. Be clear on requirements and terms that you must meet to be eligible. For some, working in a job for 10 years to receive loan forgiveness can lead to other professional and financial setbacks from missed experience in the appropriate career field. n Refinance the loans. Graduates may not be aware that they can refinance their student loans at a lower rate or choose new loan terms, including variable or fixed rates. Maturity dates can even be renegotiated in certain instances. It’s possible to save thousands of dollars in interest by refinancing, particularly if borrowers have a credit score of at least 650. If you are not being offered a better rate, do not refinance. n Make more than the minimum payment. Making only the minimum payments on student loans will not get them paid off fast, and the interest could pile up as well. By paying more than the minimum These are payments, you can pay down the principal more quickly. just some of Stick to a schedule and continue to make payments. the ways that Designate tax refunds and salary increases to pay down student loan student loan debt. debts can be n Ask for help. Speak with your boss about whether he or repaid quickly, she can help pay off student loans. Some employers offer efficiently and conditional student loan creatively. repayment to employees. n

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ACCELERATING YOUR FINANCIAL PROSPERITY

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Investors have survived market swings and corrections Investors have survived market swings and corrections before. But a twinge of uncertainty may have before. But a twinge of uncertainty may you havewondering you wondering if youifshould get another opinion to help conirm your you should get another opinion to help conirm wealth your wealth is in the right That’s whymarket we’ve made itand as and easy weas we Investors have survived market swings is in the place. right place. That’s why we’ve made it asas easy Investors have survived swings corrections on track formay can toAre have ahave complimentary, face-to-face meeting withwondering awith a corrections before. But a twinge ofretirement? uncertainty can toyou complimentary, face-to-face meeting before. But aastill twinge of uncertainty have you Financial Advisor. may have you wondering ifswings you should get your wealth Financial Advisor. if you should get another opinion toand help conirm Investors have survived market corrections another opinion to help conirm your wealth is in as we is in the right place. That’s why we’ve made as easy before. But a twinge of uncertainty may have youitwondering if youto should get another to helpmade conirmmeeting wealth can have a complimentary, face-to-face with a the right place. That’sopinion why we’ve ityour as easy is in the right place. That’s why we’ve made it as easy as we Financial Advisor. as we can to have a complimentary, face-to-face can to have a complimentary, face-to-face meeting with a Naomi Marty Naomi Marty meeting with a Financial Advisor. Financial First Vice - Investment Oicer FirstPresident ViceAdvisor. President - Investment Oicer Accredited Asset Management Specialist Accredited Asset Management Specialist 200 W College Dr, Second Floor Floor 200 W Marty College Dr, Second Naomi Durango, CO 81301 Durango, CO 81301- Investment Oicer First Vice President Naomi Marty Direct: (970) 385-3974 Direct: (970) 385-3974 Accredited Asset Management Specialist First Vice President - Investment Oicer www.naomi-marty.com www.naomi-marty.com 200 W College Second Floor Accredited Asset Dr, Management Specialist wellsfargoadvisors.com wellsfargoadvisors.com 200 W College Dr, Second Floor Durango, CO 81301 Durango, CO 81301 Direct: (970) 385-3974 Direct: (970) 385-3974 Investment and Insurance Products: www.naomi-marty.com Investment and Insurance Products: www.naomi-marty.com wellsfargoadvisors.com NOTwellsfargoadvisors.com FDIC NOTInsured FDIC InsuredNO Bank NOGuarantee Bank Guarantee MAY Lose MAYValue Lose Value Investmentand Insurance Products: Wells Fargo isand a trade used by Wells Fargo Services,Services, LLC, Member Investment Insurance Products: WellsAdvisors Fargo Advisors isname a trade name used by WellsClearing Fargo Clearing LLC, Member SIPC, a registered broker-dealer and non-bank ailiate of Wells Fargo & Company. SIPC,NOT a registered broker-dealer and non-bank ailiate of Wells Fargo & Company. NOT FDIC Insured NO Bank Guarantee MAY Lose FDIC Insured NO Bank Guarantee MAY Lose Value Value Wells Fargo Services,Services, LLC. All rights CAR-0720-03330 © 2020 © 2020 WellsClearing Fargo Clearing LLC. Allreserved. rights reserved. CAR-0720-03330 Wells is aistrade name usedused by Wells Fargo Fargo ClearingClearing Services,Services, LLC, Member WellsFargo FargoAdvisors Advisors a trade name by Wells LLC, Member SIPC, and and non-bank ailiate of Wells Company. SIPC,aaregistered registeredbroker-dealer broker-dealer non-bank ailiate ofFargo Wells&Fargo & Company. Clearing Services, LLC. LLC. All rights reserved. CAR-0720-03330 © 2020Wells WellsFargo Fargo Clearing Services, All rights reserved. CAR-0720-03330 © 2020

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7 WAY S

to save for retirement

Retirement seems like a lifetime away for young professionals. But as careers advance, families grow and milestones are met, retirement feels a lot closer. “Planning for retirement is about building a saving strategy for your working years to bridge that gap between what you need to live on to cover your desired lifestyle,” said vice president at Kennebec Wealth Management Rachel Kuss. By establishing savings goals and putting plans in motion early, you are more likely to retire on time without having to worry about money. But there are many variables to consider. A 2014 Gallup poll indicates that most Americans now retire at age 62. That is a good starting point when planning for retirement. “Basically, where we start is finding that money in someone’s budget to save,” Kuss said. “We create a budget. Sometimes we use a software that analyzes expenses. Once people can identify where they are spending money that might be unnecessary, that’s the first step.” With these saving strategies, financial planners can help individuals save more for retirement years. Raise … what raise? Workers lucky enough to get a salary increase should direct the extra money into retirement accounts instead. Since you were not accustomed to earning the money, you won't miss it. Stashing those funds into savings can help secure a strong financial future.

Max out deposit limits. By depositing the maximum allowable amount into retirement accounts each year, you can grow your savings quickly and earn considerably more interest.

Allocate your tax refund. “Some people are withholding too much money from their paycheck,” Kuss said. “They get a big refund every year after doing their taxes and they think that is a good thing. But that really means they are giving too much money out of their paychecks that could be going to savings instead. That’s a very common mistake.”

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Take advantage of employers’ offers to match retirement contributions. Many employers will match 401(k) contributions if you save enough to qualify. This is an easy way to save without having to put in any extra money out of your own pocket. Data indicates that many employees are leaving money on the table. A survey from Financial Engines found that $24 billion in 401(k) matches goes unclaimed every year, with the typical employee missing out on more than $1,300 annually.

Open a Roth IRA. A Roth IRA is a retirement savings vehicle that enables you to pay taxes on the money you put in up front. When you become eligible to withdraw the funds, they are tax-free. “Taxes are an unknown variable of the future," Kuss said. “We just never know what taxes are going to be, so Roth IRA not only do you pay regular income tax on them, but the after tax money grows tax-free forever.”

Aim for a 15% investment. Start investing 15% of gross income for retirement once you’re debt-free and have an emergency fund. This strategy can help ensure you have enough money to do what you want throughout retirement.

Make calculated cuts. Think about more affordable choices and dedicate what you would spend on those expenditures to retirement. For example, calculate the difference between buying a new car and a certified pre-owned model. Deposit the savings into retirement. Can you skip a vacation this year and do a staycation instead? Forgoing certain luxuries can help you build retirement savings. Saving for retirement becomes a little easier with strategies that can make money go further. Working with a financial planner can help individuals stay on the right track to achieve their long-term goals. Kuss says, just by taking the time to create a financial plan, many people are more likely to commit to it and follow through.

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How expenses can change during retirement Retirees must make a number of adjustments once they call it quits on a career. No adjustment is as significant as the financial one. Most people find their post-retirement income is considerably less than when they were working full-time. That is why financial planners often recommend saving and investing enough during working years to be able to replace 80% of preretirement income. Certain expenses get lower after retirement, but some will rise. Here’s a look at what to expect when the bills come due during retirement. Food costs: Food costs may go down in retirement because shopping and preparing meals for one or two people is much less costly than feeding a family of four or more. However, dining out may increase as you have more free time to visit local eateries. n Automotive costs: Less time spent in the car means fewer gasoline fill-ups and longer durations between oil changes and other services. In a year, you could easily be spending $2,000 to $4,000 a year commuting if you live within 15 miles of your job. Without commuting, that cash stays in your pocket. n Taxes: Many people can expect to be done paying federal income taxes when they are retired and no longer earning an income. If the majority of retirement savings are in Roth IRA accounts, contributions are available for withdrawal tax- and penalty-free. n

Housing: Your mortgage may be paid off before or soon after retirement. That eliminates the single largest expense in many people’s budgets. If your home will not be paid off, it’s possible to downsize to reduce monthly payments. n Travel: While many other expenses can go down, travel is one expense that can shoot up during retirement. But many people are happy to bear this cost. With more time for travel, retirees may allocate more funds toward vacations and other great escapes. n Health care: Seniors often see their health care needs and costs go up after retirement. It’s important to understand what is covered by health plans, and it’s equally important to set money aside for unforeseen medical expenses. Many costs of living decrease after retirement. However, it is wise to take in the whole picture to understand how to budget for retirement. n

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SECURITY

Simple strategies to prepare for economic recessions “Financial planning” is an umbrella term that can be applied to various aspects of money management. Many people associate financial planning with retirement. However, effective financial planning can help people confront today’s challenges just as much as it can help them prepare for their golden years. The pandemic that spread across the globe throughout 2020 posed numerous challenges, including a recession sparked by widespread job loss and declines in economic activity. The Bureau of Labor Statistics noted that the unemployment rate in the United States exceeded 10% in July 2020. The sudden rise in unemployment and decline in global economic activity underscores the need to plan for recessions, even during those times when economies are thriving. Taking steps to recession-proof finances is an important component of financial planning that can help people overcome the stress of living during a downturn. Build up your savings. A recent poll from the Kaiser Family Foundation found that 45% of adults said their mental health had been negatively affected due to stress related to the virus. That poll was conducted in March, shortly after lockdown measures were instituted and the term “social distancing” entered the North American lexicon. As the pandemic wore n

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on through the summer, fall and into the winter, stress remained a big concern for many people. Much of that stress stemmed from the economy, but one way to ease that stress is to have a substantial amount of money in savings. Each person’s financial needs are different, but many planners recommend clients have at least six months’ worth of expenses in their savings as a cushion to help them get through job loss. Pay down debt. Debt, particularly high-interest debt, can compromise your ability to save. A 2019 survey found that 13% of Americans admitted that debt was preventing them from saving more money. Pay down debt like credit cards and only make credit card purchases if you have the money to pay the bill in full when it’s due.

Avoid overspending. Many financial planners recommend a 50-30-20 approach to money management. Such an approach advises people to devote 50% of their earnings to needs, 30% to their wants and 20% to savings. Spending more than 30% on wants can make it difficult to build up a savings account to levels that can protect you in the event of a recession. n

Expect the unexpected. The American economy was doing historically well, only to have the bottom fall out during the pandemic. If you want to recession-proof your finances, do not take your foot off the gas in regard to insulating yourself from the next recession. No matter how strongly the economy is performing, continue to expect the unexpected and prioritize saving so you have a soft landing awaiting you should the economy again take a sudden turn for the worse. n

The timing of recessions is unpredictable, but they are inevitable. Effective financial planning can help anyone overcome the challenges posed by economic downturns. F I N A N C I A L

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Ways small businesses can weather financial uncertainty The uncertainty wrought by the pandemic has affected people from all walks of life. The outbreak of the novel coronavirus, and the ensuing measures implemented in the hopes of curbing its spread, changed the way people live and how companies do business. Some companies have thrived during the pandemic, still had to be honored, even if companies were no while others have faced unprecedented challenges. longer generating revenue. Many small businesses Many small businesses have been hit especially hard operate on slim margins that make it hard to save while navigating regulations, prompting owners to while still improving the business. But small business express concerns about their long-term viability. A owners who make concerted efforts to build their recent MetLife & U.S. Chamber of Commerce Small cash reserves without compromising their offerings Business Coronavirus Impact Poll found that 70% of should be in a better position to withstand financial small business owners are concerned about financial uncertainty in the years to come. hardship due to prolonged closures, n Watch inventories carefully. The Small while 58% worry that they will have to Business Administration recommends Effective permanently close their businesses as a that small business owners keep watchful result of the pandemic. eyes on inventories. The goal is to ensure planning can Few people, if anyone, likely saw the you can continue to meet sales needs pandemic coming, which is perhaps why help small without ending up with a stockpile of the resulting financial uncertainty has leftover merchandise that’s difficult proven so difficult to comprehend. As the business to move if or when retail sales slump. months go by and COVID-19 case numbers Stocking up on more than you need to owners again remain steady, small business meet sales needs can eat up cash that you owners are understandably concerned weather can otherwise use to build your reserves. by the potential implementation of n Reduce rented space if possible. One additional measures to stop the spread of financial the virus. However, there are steps small potential positive that may come from storms that businesses can take so they’re ready for the pandemic is that many workers any additional financial uncertainties that and businesses deftly handled the can arise arrive in both the near and distant future. transition from in-office working to remote working. Small businesses that n Build cash reserves. Cash on hand can unexpectedly. successfully made that transition can help small business owners in much the safeguard themselves against future same way that sizable savings accounts uncertainty by reducing their office space. Small can help laid off workers overcome a sudden loss of business owners can renegotiate existing leases to income. Forced closures hurt many small businesses allow for subleasing or simply move into smaller because their bills still came due even if government offices when existing leases expire. Money saved on officials deemed them “nonessential” and forced them office rentals can be redirected to help businesses to close. Rent was still due each month and, in many instances, contracts signed prior to the pandemic grow their cash reserves. 16

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Loan Originator | NMLS 441114 970.739.3616 Mobile Lisa.deKramer@GatewayLoan.com GatewayLoan.com/lisa-de-kramer

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Gateway Mortgage, a division of Gateway First Bank. NMLS 7233. 208 W. North St., Ste. 4 | Cortez, CO 81321

Whether you are building your first home or your first nest egg, we have the financial tools to help you achieve your goals. 2258 E Main St • Cortez, CO 81321 • (970) 565-3781 www.fnbcortez.com F I N A N C I A L

Offers of credit subject to prior approval. NMLS #403387 P L A N N I N G

Saving more each month Saving is a vital component of financial planning for individuals and families alike. However, more than half of Americans are saving too little and they do not have an accurate picture of personal spending habits. In 2019, a survey from Intuit Mint Life found that 59% of Americans were living paycheck to paycheck, and 65% didn’t know how much they were spending on a monthly basis. While there’s no magic formula to saving money, and the amount of cash one should save each month depends on how an individual wants to live now and in the future, there are a variety of approaches to build savings throughout the year. n Follow the 50/30/20 rule. The popular 50/30/20 rule advocates for allocating 50% of your budget to essentials like rent, food and housing, 30% for discretionary spending and 20% for savings. Many people cannot save 20% of their income. In such instances, people can make a concerted effort to save 10% of their take-home pay.

Saving money isn’t always easy, but with goals and certain strategies in mind, it’s possible for individuals to grow their savings and secure their financial futures.

ways to reduce family expenses

Plan more meals. Impulse buying is one of the most costly ways that families easily overspend. A 2018 survey found that the average consumer in the United States spends $5,400 annually on impulse buys. More than 70% of impulse spending goes toward food. Families looking to cut costs can plan more meals so they know what they need when they visit the grocery store, which should reduce the amount of money they spend on spur-of-the-moment purchases. Simplify special occasions. It can be fun to go a little overboard for birthday parties, anniversaries and holiday gatherings. However, such spending should be seen as a luxury during a recession. Momentous occasions can be both special and inexpensive. Birthday picnics in the park can be just as unique and memorable as lavish

Build an emergency fund. The credit reporting agency Experian recommends consumers keep between three and six months’ worth of expenses in an emergency fund. The fund should cover expenses on the absolute necessities paid each month, like utilities rent/mortgage and groceries. n Set goals. Savings goals can help a person stay on track and provide motivation to put money away. Establish separate savings accounts for each goal to reduce the temptation to spend. For example, if the goal is to save more for vacations, then a person can open an account where funds are used exclusively for vacations. n Automate with your employers’ help. Certain employers allow workers to direct deposit a paycheck into more than one bank account. It’s easy to request the payroll manager put 10% or 20% of a paycheck into a savings account while the remainder is deposited into a checking account. Automated deposits can help individuals get accustomed to living on less. n

parties, and they won’t cost nearly as much. Parents can agree to forgo gift-giving on anniversaries or birthdays, opting instead for romantic homemade dinners. Think of new ways to get away. Many families canceled or postponed vacations in 2020 as travel restrictions and social distancing guidelines greatly limited travel options. While it might be possible to travel safely again in 2021, families still dealing with the fallout from COVID-19 may be hesitant to plan traditional vacations. Thankfully, there are ways to get away without breaking the bank. Many campsites are free, or charge nominal fees to use their facilities, and such excursions can be great ways for families accustomed to flying and fivestar hotels to enjoy new experiences.

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Savings & Money Management Made Easy Change Matters®

It adds up fast for effortless saving. With your Alpine Bank Visa® Debit Card, you can opt in to our rewards program that rounds up your transaction to the next whole dollar every time you use your card. Then, that money goes into your designated savings or money market account. Alpine Bank adds 5% to your Change Matters® savings balance once a quarter. The best part? It makes saving easy and automatic. Sign up today! *To qualify for the Change Matters program, you must have a checking account, debit card, and a money market account/saving account with Alpine Bank. The 5% bonus is calculated and automatically credited to account holders’savings or money fund account quarterly. Bonus is subject to IRS and other tax reporting. Other standard account terms, conditions and fee schedule still apply.

Mind Your Money

Got a few spare minutes? Check out Alpine Bank’s free financial education program, Mind Your Money, and start on your path to better money management today. Our short interactive learning modules play right on your device, in English or Spanish, so you can access them anytime; anywhere: • Budgeting • Auto Loans • Emergency Savings • Checking Accounts • Credit Cards

• Investments • Identity Protection • Credit Scores and Reports • Homeownership • Retirement Planning

INDEPENDENCE • COMMUNITY • COMPASSION • INTEGRITY • LOYALTY ALPINEBANK.COM • MEMBER FDIC

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speicherfg.com (970) 828-7000 799 E 3rd Street, Suite 4 Durango, CO 81301 Contact us today to learn more about our investment planning services using our exclusive VISTA Process. Securities and Advisory Services Offered Through Prospera Financial Services, Inc. • Member FINRA, SIPC

Financial Planning

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